Microeconomics is the study of

A) the behavior of the economy as a whole.
B) a nation from the perspective of the whole world.
C) how individuals and firms make decisions.
D) the effect that money has in the economic system.

Answer: C

Economics

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If the net benefit of Project A is $5 and that of Project B is $8, switching from Project A to Project B:

A) reduces the net benefit by $3. B) increases the net benefit by $3. C) increases the net benefit by $8. D) decreases the net benefit by $8.

Economics

If the money price of hats rises and no other prices change, the I. relative price of a hat rises. II. opportunity cost of a hat rises

A) only I B) both I and II C) only II D) neither I nor II

Economics